Under what circumstances can Bft seek injunctive relief without mediation or arbitration?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
E. Other Proceedings (Right to Injunctive Relief). Nothing in this Agreement, including the provisions of Sections 12.B through 12.D, bars a Party's right to seek and obtain in any court of competent jurisdiction injunctive or other equitable relief against actual or threatened conduct that it believes is likely to cause loss or damage to its trademarks (including the Marks), its proprietary
information, or its systems (including the System), in each case, under customary equity rules, including applicable rules for obtaining restraining orders and injunctions. Each Party agrees that the other may obtain such injunctive relief in addition to such further or other relief as may be available at law or in equity. The Parties agree that the Party seeking injunctive relief pursuant to this Section will not be required to post a bond to obtain injunctive relief and that the only remedy for a Party if an injunction is entered against it will be the dissolution of that injunction, if warranted, upon due hearing (all claims for damages by injunction being expressly waived hereby).
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft can seek injunctive or other equitable relief in a court of competent jurisdiction against actual or threatened conduct that is likely to cause loss or damage to its trademarks, proprietary information, or systems. This right exists regardless of the standard mediation or arbitration procedures outlined in the agreement.
This means that Bft can bypass mediation and arbitration if it believes a franchisee's actions pose an immediate threat to its brand, confidential data, or operational infrastructure. This is a common provision in franchise agreements, allowing franchisors to quickly address issues like trademark infringement or unauthorized disclosure of trade secrets.
The FDD specifies that Bft is not required to post a bond to obtain injunctive relief. The franchisee's only recourse if an injunction is entered against them is to seek the dissolution of that injunction, if warranted, upon due hearing, as all claims for damages by injunction are expressly waived. This clause favors Bft by streamlining the process for obtaining injunctive relief and limiting the franchisee's potential remedies. Prospective franchisees should understand that this could put them at a disadvantage in disputes involving Bft's trademarks, proprietary information, or systems.